Centrica plc
Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Scandinavia, North America, and internationally. The company operates through British Gas Services & Solutions, British Gas Energy, Centrica Business Solutions, Bord Gáis Energy, Energy Marketing & Trading, and Up…
Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Scandinavia, North America, and internationally. The company operates through British Gas Services & Solutions, British Gas Energy, Centrica Business Solutions, Bord Gáis Energy, Energy Marketing & Trading, and Upstream segments. It supplies gas and electricity to residential, commercial, industrial customers, and small businesses, as well as offers energy-related services; and generates power from nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, electrical appliances; and heating, ventilation, and air conditioning systems, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; procurement and sale of LNG; and supply of energy efficiency solutions and technologies. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it provides vehicle leasing, commercial, and insurance services, as well as energy management products and services; constructs battery storage; builds solar farm and connects to grid; and operates a gas storage and franchise network. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was founded in 1812 and is based in Windsor, the United Kingdom.After signing in, return here and select “Add to watchlist”. Saving companies requires a verified email address.
Priced within the modelled range
5-year outlook: Not shown because confidence is low: EV/EBITDA (12x) disagrees strongly.
Other models: GBP 1.38–14.17 (median 7.77). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Start with the price and fair value range, then review the data dates and assumptions below. Estimates are not predictions or investment advice.
Market price within modeled range
Free-cash-flow DCF using Fiscal year 2025 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 3% growth, 2.2% terminal growth, and 8.6% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 3% (limited from 3.51% because the latest annual revenue declined), discount rate 8.60%, terminal growth 2.20%. See a worked example.
Blended growth assumption: 3.5% (sector default 4.0%, own revenue history 7.2%, analyst revenue consensus 1.4%).
Analyst consensus expects revenue growth of 1.4% a year; the growth assumption used is 3.0%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — GBP 1.42 (-6.2%)
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EPS-based Gordon proxy
— not applicable
Not used: Cannot be computed: net income is zero or negative.
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DCF (trailing free cash flow)
— GBP 1.42 (-6.2%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— GBP 1.38 (-8.7%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— GBP 14.17 (+838.4%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— GBP 1.41 (-6.3%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— GBP 25.86 (+1612.4%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 1.11 | -36.3% |
| Base GBP 1.42 | -6.6% |
| Bull GBP 2.01 | 25.0% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At GBP 1.51 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.2%, discount 8.6%).
Compare: the market implies 4.9% a year, this model assumes 3.0%. The market expects more than this model does, which is why it reads as overvalued.
Sensitivity: base value per share
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
These are assumption-based scenarios, not a confidence interval. Scroll horizontally to see all discount rates.
| Growth \ Discount | 6.6% | 7.6% | 8.6% | 9.6% | 10.6% |
|---|---|---|---|---|---|
| -1.0% | 1.65 | 1.41 | 1.24 | 1.11 | 1.02 |
| 1.0% | 1.78 | 1.51 | 1.32 | 1.19 | 1.08 |
| 3.0% | 1.92 | 1.62 | 1.42 | 1.27 | 1.15 |
| 5.0% | 2.07 | 1.74 | 1.52 | 1.35 | 1.22 |
| 7.0% | 2.24 | 1.87 | 1.62 | 1.44 | 1.30 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
6 months price change: -22.77% · GBP 1.52 · Market data through 06 Nov 2026 ; dashed line is today’s model base value (GBP 1.42). The fair value is today’s estimate, not what the model said in the past.
Saved price history is current through 06 Nov 2026; last refreshed 06 Nov 2026 18:14 (22 minutes ago).
07 May 2026Range GBP 1.46 – 2.0106 Nov 2026
Latest news
Headlines provided by EODHD. Articles may mention multiple companies and are not investment recommendations.
More detail: quality, peers, price history, dividends and financials
Quality score: 92 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 3 of 5 years profitable | 12 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +7.2% a year | 20 / 20 |
| Balance sheet | net cash | 20 / 20 |
| Margins | EBITDA margin 28% | 20 / 20 |
Peers in Utilities
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| CNA.L (this company) | GBP 1.51 | -6.6% | – | 2.3 | 3.3% | 92 |
| ED Consolidated Edison | USD 121.44 | 29.8% | 20.3 | 1.7 | 2.7% | 78 |
| ENGI.PA Engie SA | EUR 24.08 | 15.6% | 15.9 | 1.9 | 7.4% | 76 |
| FORTUM.HE Fortum Oyj | EUR 23.28 | -4.1% | 25.9 | 2.6 | 6.0% | 72 |
| D Dominion Energy | USD 69.64 | -5.5% | 22.7 | 2.1 | 3.8% | 76 |
| CMS CMS Energy | USD 70.68 | -6.5% | 25.4 | 2.3 | 3.2% | 64 |
| NTGY.MC Naturgy Energy Group, S.A. | EUR 29.54 | -10.6% | 14.2 | 3.1 | 5.9% | 70 |
| EIX Edison International | USD 60.88 | -11.3% | 6.4 | 1.3 | 5.6% | 52 |
| NEE NextEra Energy | USD 88.25 | -16.2% | 15.9 | 3.0 | 2.7% | 72 |
| Peer median | 18.1 | 2.2 | ||||
Dividends
Paid in the last 12 months: GBP 0.00 per share · yield 0.04% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.001 |
| 2025 | 0.000 |
| 2024 | 0.000 |
| 2023 | 0.000 |
| 2022 | 0.000 |
Annual financial statement
Saved annual report · Fiscal year 2025 · EODHD annual statements · period ended 31 Dec 2025
| Revenue | GBP 19,492,000,000 |
|---|---|
| EBITDA | GBP 5,529,000,000 |
| EBIT | GBP 5,101,000,000 |
| Net income | GBP -72,000,000 |
| Free cash flow | GBP 322,000,000 |
| Capital expenditures | GBP 554,000,000 |
| Debt | GBP 2,856,000,000 |
| Cash | GBP 4,309,000,000 |
| Working capital | GBP 3,273,000,000 |
| Shares outstanding | 4,785,000,000 |
| Reported dividends per share | GBP 0.0495 |